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Surety Bond Brokers of Construction Trucking Services, Changes.

In California, a broker of construction transportation services must maintain a surety bond in an amount of not less than $15,000.

California SB 1092 revises the existing notification requirements for brokers of construction trucking services that must provide a copy of the bond required under existing law when requested.  The bill would make providing a copy of the bond mandatory.

According to the Surety Association of America, the new law requires the broker to provide written evidence of a valid surety bond annually to a third party, nonprofit, industry related organization that regularly maintains a published database of bonded brokers. The broker also may post a current copy of the surety bond on its website.  The new law prohibits the hiring of brokers who have not complied with the requirements to provide a copy of the bond.  The new law also prohibits a broker of construction trucking services from hiring or engaging the services of a motor carrier of property to furnish construction transportation services unless the broker provides written evidence of the broker’s valid bond prior to the commencement of work each year to any person that hires the broker to furnish such services and also to the motor carrier.

CA Code SB1092 (Amends Section 34510.5)

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